Today, I want to dive into a topic that I find fascinating and believe is rapidly shaping our future—how we’re heading towards a cashless society. This idea sparked from a talk by the CEO and Provost of the University of Nicosia, where I’m currently based.
What struck me about his presentation was the emphasis on decentralized technologies, including cryptocurrency, blockchain, and digital assets. The university has set out four goals, and the fourth pillar focuses exactly on this shift. While listening to Professor Antonis, I was reminded of something he shared about his mother, who worked as an accountant. When she retired, not much had changed in her profession. But today, things are evolving so fast that the very concept of money as we know it is poised to disappear, whether we like it or not.
I want to share three key factors driving this transformation.
The first is stablecoins. In the crypto world, stablecoins have become essential for liquidity. Take USDT, the largest provider of digital dollars, for example. Then you have Circle, which created USDC, alongside other companies worldwide issuing their own stablecoins. Stablecoins bridge the gap between traditional currencies and cryptocurrencies, injecting much-needed liquidity into the market.
Next, we have CBDCs—Central Bank Digital Currencies. Some people cling to the idea that physical cash will always be around. But if we look at India, we see how quickly things can change. A few years ago, Prime Minister Modi decided, almost overnight, to demonetize lower denomination bills. The transition was rapid, and in response, India implemented one of the world’s best digital payment systems.
They didn’t stop there. They connected digital identity with payments and created open protocols that allowed fintechs and other businesses to thrive. This example shows us that, even in a cash-heavy society like India, cash can be phased out if the government makes the right moves. Open finance through APIs will allow transactions to flow seamlessly, and it feels natural for most of us—after all, we’re already using our phones to handle payments every day.
For instance, I spent the last 15 months living in London, and I loved how effortlessly I could pay for just about everything with my phone. Back in 2015, during my master’s, many businesses were still hesitant to accept digital payments. But now, almost every place in London does. I only needed cash in a few rare situations, like paying for a haircut or grabbing fish and chips at certain shops.
This shift in behavior didn’t just happen in London. I’ve noticed it here in Cyprus as well. I can now go to almost any store or restaurant and pay with my phone—an incredible convenience. The only time I’ve had to use cash is when I take the bus, because I haven’t yet sorted out a card for that. But even that will change soon.
The third driving factor is tokenization. This concept is truly exciting to me. It’s about converting physical assets into digital ones. Let me give you an example: Imagine you want to invest in a restaurant. The place is worth a million euros, but you only have a thousand to invest. Thanks to tokenization, you can still buy a fraction of that restaurant.
Let’s say you believe in the chef and his vision. Each time the restaurant makes a profit and issues dividends, you’ll receive a share because you own part of the asset. If the restaurant does well and gets bought by a big brand, your initial investment may even double in value. Tokenization makes this possible.
I recently shared this example with an 18-year-old biotech student, and even though she’s tech-savvy and handles everything through her phone, she was surprised. It’s interesting because while this generation is fully immersed in digital life, the idea of tokenizing real-world assets still seems futuristic.
The key opportunity here is that not many people are discussing this yet. They aren’t searching for terms like “real-world assets” or “asset tokenization” on Google—but they will. Tokenization is going to be a game-changer, and I believe it’s one of the critical building blocks for a cashless society.
When you combine stablecoins, CBDCs, and asset tokenization, you start to see the outline of a future where physical currency becomes obsolete. In the next 20 years, this transition will be undeniable. Whether we’re ready for it or not, it’s coming.
So, take a moment to think big, just as the University of Nicosia advises. Let me know your thoughts in the comments—when do you think we’ll truly become a cashless society? Thanks for tuning in.